Chery Auto (09973) rose more than 6% in morning trading. As of press time, the stock was up 6.48% at HK$25.98, with a turnover of HK$22.3627 million.

According to the latest sales data released by Chery Group, it sold 292,308 vehicles in September, a year-on-year increase of 4.2%. Cumulative sales in the first three quarters totaled 2,206,789 vehicles, up 9.9% year-on-year.

In September, Chery Group exported 207,814 vehicles, with monthly exports once again exceeding 200,000 units and setting a new record for China's single-month auto exports. Chery Group's cumulative exports in the first three quarters of this year reached 1,551,178 vehicles, a year-on-year increase of 65.6%. In September, exports of new energy vehicle models surged 174.0% year-on-year.

Huaan Securities previously noted that Chery's new brand introduction, new category expansion, channel development, and localized production capacity improvements support the certainty of high overseas growth, while the volume ramp-up of high-end vehicle exports and an increased share in Western Europe provide profit elasticity from overseas markets. The domestic peak season combined with the new vehicle cycle is driving a recovery in domestic sales. We estimate the company's net profit attributable to parent for 2026-2028 to be RMB 21.4 billion, RMB 26.0 billion, and RMB 31.4 billion, respectively. This corresponds to a 2026 PE of 6.1x, and we maintain our "Buy" rating.